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If You Put A Dollar Amount On A Dream

What does it cost to realize your entrepreneurial dream?



By Jared Hess

There are those who seek opportunity, they consider themselves strategist. Analyzing  their market for the most profitable prospect. Coffee Shop? Dry Cleaner? Franchise? Other's save and carefully plan. They have a dream, a special idea, a someday. When that “Some Day” turns into a real business plan and action, it's like getting on a roller coaster. You know you’re going for a ride. You stand in line with a light feeling in your chest, your heart is racing. You watch others on the ride, some are laughing and having a wonderful time, others are sick and pale, getting off the ride and headed for the nearest garbage can. The light feeling turns into butterflies. Excitement, anticipation and fear. What's at cost? What is the cost?

 

The range is pretty extreme. Some have paid $4,000 others spend millions. Experienced entrepreneurs say that start up costs for a new business can be divided into six major categories; Costs of sales, professional fees, technology costs administrative costs and marketing. In detail, and layman's terms, this means incorporating fees, legal and accounting costs, licenses and permits, remodeling, rent, security deposit or real real estate purchase, signage and materials, initial inventory and supplies, furniture and equipment.  Once you've established the numbers, and it's of course more than you thought it would be, do it again, and be a little more conservative. Anyone who says that amount is all you need, is wrong.

 

The next step is considering your ongoing expenses;  rent or mortgage, utilities, payroll and owner's draw, inventory replenishment, insurance, advertising, taxes, debt repayment and working capital.  If you've added it together, and are confident the numbers are accurate, multiply it by six. Experts say that six months operating expenses is the minimum cash reserve you should have on hand. The six months operating expenses should be added to your initial expenses, giving you your total start-up costs.

 

Don't let attaching a dollar amount to your dreams be intimidating. “Nobody succeeds beyond his or her wildest expectations unless he or she begins with some wild expectations.” --Ralph Charell.

 

Your customers and clientele are waiting for you to get on the roller coaster, let them know your there.       One online source on the importance of advertising explains “-Advertising is the key to keeping a business in front of consumers.-Advertising generates new sales which leads to repeat  business from existing customers and creates new leads that turn into future sales. The more familiar buyers are with a business or brand, the more likely they are to purchase that brand.” Advertising is not the gamble it once was. It's easy and profitable to make informed decisions based on market trends and conversion rates. Knowing your most profitable campaigns and where people are calling you from. Call Tracking is imperative to achieving a return on your advertising investment and is just one of the tools available from ACI Call Tracking to secure you on the ride to realizing your dream and making the ride enjoyable and making your business venture a success.


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